US Government Considers 10% Equity Stake in Intel to Bolster Semiconductor Independence

The Biden administration is negotiating a potential 10% ownership stake in Intel Corp., which WOULD make the federal government the chipmaker's largest shareholder. The move would convert portions of Intel's $10.9 billion CHIPS Act grants into equity—a strategic shift from subsidies to direct ownership in critical tech infrastructure.

At current valuations, the stake would be worth approximately $10.5 billion. Market reaction was immediate, with Intel shares dropping 4% Monday after a 23% surge last week—the stock's strongest weekly performance since February. Investors appear divided on the implications of government ownership.

The proposal underscores Washington's aggressive push to reshore semiconductor production. Three sources confirm the administration is still evaluating legal and national security ramifications. A WHITE House spokesman maintained standard protocol: "No deal is official until it's announced."